MCQs for CA Students Articleship Assessment Level 1 | Income Under the Head Salary

MCQ – CA Intermediate

Question 1:- 

Any …………………… received by Indian Government employee (who is citizen) for services rendered outside India would be exempt from tax.

(a) Salary

(b) Perquisite/Allowance

(c) Both A and B

(d) None of the above

Question 2:- 

Select the correct statement.

(a) Where salary has been earned by employee but subsequently he waives his right to receive the same then it would not be included in his taxable income as salary.

(b) Where salary has been earned by employee, but he waives his right to receive the same then also it would be included in his taxable income as salary.

(c) Where salary has been earned by employee, but he waives his right to receive the same then it would be deductible from gross total income of the employee.

(d) None of the above

Question 3:- 

A Government employee has rendered services in India and retired in 2011. Thereafter he shifted and settled abroad . The pension received by such employee would be …………………….   ?

(a) Deemed to accrue or arise outside India

(b) Deemed to accrue or arise in India

(c) Deemed to accrue or arise in India only when it is received in India

(d) Deemed to accrue or arise in India only when it is received outside India

Question 4:- 

An employee receives salary from his employer, on which TDS is borne by employer.  In that case such TDS …………………………?

(a) Would not be included in the income of employee

(b) Would be considered as salary of employee

(c) Would be considered as income from other sources of employee

(d) Would be considered as income of employer

Question 5:- 

Select the correct statement from the following.

(a) Salary paid by foreign enterprise to its employees serving in India would be taxable in India under the head salaries

(b) Salary paid by foreign enterprise to its employees serving in India would not be taxable in India under the head salaries

(c) Salary paid by foreign enterprise to its employees serving outside India would be taxable in India under the head salaries

(d) None of the above

Answers

1. (b) Perquisite/Allowance
2. (b) Where salary has been earned by employee, but he waives his right to receive the same then also it would be included in his taxable income as salary.
3. (b) Deemed to accrue or arise in India
4. (b) Would be considered as salary of employee
5. (a) Salary paid by foreign enterprise to its employees serving in India would be taxable in India under the head salaries